The Dubai
Financial Services Authority (DFSA) rolled out a digital platform today
(Monday) designed to accelerate the licensing process for financial firms
seeking to operate in the emirate’s International Financial Centre.
According to the market watchdog, this is a direct respond to a wave of
applications from brokers and trading companies targeting the
region’s expanding retail investor base.
Trading Firms Flood into Dubai’s
Financial Hub
DFSA
Connect automates portions of the authorization workflow and aims to
cut processing times by roughly one-third, according to
the regulator. The DFSA logged an 18% jump in applications
during the first nine months of this year compared to the same
period in 2024.
The timing
reflects broader momentum in the Gulf. The DIFC registered 1,081
new companies in the first half of 2025, bringing total
active entities to 7,700, with financial services authorizations
climbing 28% year-over-year to 78 through June.
“DFSA
Connect represents a step-change in how we support innovation and
growth in the DIFC,” said Juma Thani Alhameli, Chief Operating
Officer of the DFSA. “By deploying cutting-edge
digital capabilities and preparing for advanced AI integration, we
can respond faster, operate smarter, and deliver tailored
solutions that meet the evolving needs of individuals and
businesses alike.”
CFD and FX
brokerages account for a notable share of that growth, drawn by
Dubai’s positioning between European and Asian trading hours and
regulatory frameworks that permit higher leverage
than Western jurisdictions.
We don’t
have to look far for examples. FinanceMagnates.com reported today that XS.com
has obtained a license to operate in the region. Last week, Exness
announced the same. Cryptocurrency firms are also competing for a share of
the Middle Eastern market, with Bybit
recently joining their ranks.
CFD Brokers
Eye Faster Setup
Retail
trading firms have increasingly looked to Dubai as a licensing hub.
The DFSA permits leverage up to 50:1 on major currency pairs and
indices for retail clients, compared to 30:1 caps in the
European Union and similar restrictions in the United Kingdom.
That
regulatory gap has made DIFC-licensed entities attractive
distribution channels for firms serving customers across the
Middle East and North Africa, where retail forex
participation has grown at a 7.8% compound annual rate since
2022.
For
example, Capital.com reported its volumes for the first half of 2025, showing
that more
than half came from the MENA region ($800 billion). By comparison, the
platform generated more than three times less in Europe ($224 billion).
Tickmill also significantly increased
its trading volume in the region over the past year, by as much as 54%.
The
new platform reduces manual steps in the
application process, which previously required multiple document
submissions and back-and-forth exchanges between applicants and DFSA
staff. DFSA Connect consolidates those interactions into a single
digital interface, with automated checks replacing some
preliminary reviews.
Application
Volumes Test Capacity
The 18%
increase in applications this year has stretched the regulator’s
processing capacity. The DFSA projects a 33%
efficiency gain from the new system, which could translate to
faster turnaround times for firms awaiting authorization to
conduct financial services in and from the DIFC.
Brokerages
including Scope
Markets and GCC
Brokers have expanded their Middle East footprints this year,
citing demand from local traders and the region’s time zone
advantages. Several European firms have
opened DIFC entities to complement licenses held in Cyprus
or Malta, using Dubai as a booking center for
clients outside the EU’s regulatory perimeter.
Beyond
traditional brokerages, the DFSA has drawn fintech
applications through a regulatory
sandbox it expanded in 2025. That program allows firms to test
products in a controlled environment before seeking full
authorization, a structure that has appealed to payment processors,
digital asset platforms and algorithmic trading developers.
The DIFC
now hosts more than 1,100 fintech and innovation companies, according
to the center’s data. The FinTech Hive accelerator, managed by DIFC,
supports over 100 startups annually with access to
regulatory guidance and funding connections.
This article was written by Damian Chmiel at www.financemagnates.com.
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